Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
138.130,
138.140,
138.146,
138.155,
138.165,
138.195,
138.990
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
131.130(1) authorizes the
Department of Revenue to promulgate regulations necessary for the
administration and enforcement of all tax laws in Kentucky. This administrative
regulation establishes requirements for the proper disposal of unstamped and
untax-paid cigarettes damaged in transit from manufacturers to Kentucky
licensed resident wholesalers and Kentucky licensed unclassified
acquirers.
Section 1. Definitions.
(1) "Resident wholesaler" is defined by
KRS
138.130(10).
(2) "Unclassified acquirer" is defined by
KRS
138.130(15).
Section 2.
(1) All damaged cigarettes not accepted by
the resident wholesaler or unclassified acquirer at time of delivery shall be
reported by the transporter to the Department of Revenue within twenty-four
(24) hours after the transporter returns to his or her place of
business.
(2) Notification may be
mailed or hand-delivered in the form of:
(a) A
letter to the Tobacco Tax Section, 501 High Street, Frankfort, Kentucky
40620;
(b) A facsimile transmission
(fax) addressed to the cigarette tax administrator at 502-564-3393;
or
(c) An electronic mail message
addressed to DOR.WebResponseTobaccoTax@ky.go.
(3) As part of its notification to the
department of damaged cigarettes, the transporter shall also confirm its
decision to either:
(a) Return the cigarettes
to the manufacturer; or
(b) Destroy
the cigarettes in the presence of a department representative.
Section 3.
(1) Damaged cigarettes delivered to and
accepted by the resident wholesaler or unclassified acquirer from the
transporter shall be included as receipts on the resident wholesaler's or
unclassified acquirer's monthly report.
(2) The resident wholesaler or unclassified
acquirer shall select one (1) of the following methods for disposal:
(a) Stamp and sell the cigarettes;
(b) Return the cigarettes to the
manufacturer; or
(c) Destroy the
cigarettes in the presence of a department representative.
Section 4. The resident
wholesaler or unclassified acquirer shall provide a copy of the credit
documentation issued by the manufacturer to the department to verify the
quantity of damaged cigarettes returned for each consignment or delivery
returned to the manufacturer.
Section
5.
(1) This administrative
regulation shall replace Revenue Circular 73C459.
(2) Revenue Circular 73C459 is hereby
rescinded and shall be null, void, and unenforceable.
STATUTORY AUTHORITY:
KRS
131.130(1),
138.140(7),
138.146(3)
